There are many instances in which various expenses can be considered to be tax deductible based upon the tax law in the United States. One such expense, which is not commonly thought of, is private security services.
However, while private security can be tax deductible, this only pertains to certain circumstances. Keep in mind that the private security that we’re referring to is different from the security guards that are hired for a business. Here’s an overview:
Private Security Guards Only Extends to a Select Few
Having a private security detail follow you and monitor your safety 24/7 is not necessarily tax deductible. For example, a celebrity who hires a bodyguard and goes to the mall to shop can’t claim that it’s a business expense. However, for many corporate executives, private security can be classified as being exempt from taxes. That’s because having private security and bodyguards can be explained as being necessary to the safety of the executive.
It’s considered to be a corporate tax loophole, in which corporations provide various security measures for the executive that they deem to be absolutely necessary for his or her safety. And it’s not just private security guards that this can extend to. Corporations are also able to claim that it’s necessary for executives to have access to the company’s private jet, provided that it’s being used to fly to a destination for business purposes.
Other additional private security services that corporations can state are necessary for the safety of the executive are:
- A personal driver;
- A company car;
- Home alarm systems.
Granted, there is a great deal of criticism that many of these corporations face, as some of the aforementioned security measures aren’t viewed as being absolutely vital for the safety of the executive. But nonetheless, corporations are acting within their legal means due to the various tax loopholes that exist.
But What About Everyone Else?
You don’t have to be an executive to be able to declare some private security measures as tax exempt. The main one that you can claim is any type of home alarm security system at your private residence. This is only the case, though, if you use a part of your home as your place of business, such as having a work office in one of your rooms.
It’s based off of a pro rata measurement, in which the alarm system costs are calculated by examining the portion of your home that is being used to operate your business. This is similar to other expenses that you can write off as being home office expenses. If you do have a home office that you use for work purposes, you should talk to your accountant to see what portion of your home alarm services is tax exempt.
First Security Services provides a wide range of security services, including through its sister company, First Alarm Services. With decades of experience in providing the very best in security protection services, you can be confident that you’re making the right choice. Contact us today for your free consultation!